AUSTRAC targets 427 crypto exchanges with crackdown on inactivity

Australia’s financial intelligence agency AUSTRAC is intensifying efforts to address inactive digital currency exchanges by urging them to either resume operations or voluntarily withdraw their registrations.  

There are currently 427 registered digital asset exchanges in Australia, but a significant proportion are inactive, raising concerns about their potential exploitation by criminals.  

AUSTRAC plans to contact these inactive exchanges to remind them of their legal obligations, including the requirement to update the agency about any services they no longer provide.  

“Businesses registered with AUSTRAC are required to keep their details up to date; this includes details about services that are no longer provided,” AUSTRAC CEO Brendan Thomas said.

“The agency’s goal is to protect consumer confidence in AUSTRAC registration and limit the potential for improper sale and use of DCE [digital currency exchange] businesses,” he added.

AUSTRAC has the authority to cancel registrations if there are reasonable grounds to believe an exchange is inactive. However, exchanges whose circumstances change can reapply for registration.  

The agency also plans to create a publicly accessible register of digital asset exchanges. This will allow the public to verify whether an entity is registered, helping to prevent misleading claims about legally authorized services.  

“Improve the integrity and accuracy of its register” is the aim of the initiative, AUSTRAC stated, urging businesses to “use it or lose it.”